The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-10


The law making this pledge declares that the
coin paid for duties imported goods shall be
set apart as special fund, and shall be applied.
nrst. topasment of interest on the bonds and
notes of the United States; and second, to tho
purchase or payment Of per centum Of the en-
tire debt of the United States. to be made within
ach fiscal year.
ut was expressed al q hope, by members Of
the Senate, when the law passed later providing
for bonds OF q lower rate of interest was en-
acted that within thirty years all government
obligations would be at par in coin. The
thought of the Nation at that time, as expressed
in its pledge, was to reach the maximum of good
credit--par in coin. The degree of strength
sought to be given credit by this pledge was to
bring evidences of the government debt up to
par In coin This law was not intended to increase
debt, as expressed on the face OF its outstanding
obligations. nor to give authority to do 50 under
and determined by the law and the face of tho
bonds and notes outstanding.
This debt has definite character on she
governments books. The supreme object OF the
law to extinguish that debt, as so declared
ard expressed. The intent and purpose OF the
law govern its Interpretation. This act was
dealing with . ianguishing public credit. The
intent and purpose was to raise tho obligations
OF the government from the despondency theu
covering them TO an equivalent value to their
face in coin- When this was done the full force
and strength of the law was spent The ecrs-
tary treats this law as an authority to him to
add by agreement with the bondholder one, two.
three or four hundred more dollars in prem
to each 81, 900 bond, comprising the 1
per centum OF the entire debt, which he 10 year
ly required to purchase or pay under the sink
ing fund law.
.'The bonds run thirty years; per centum
is to be purchased or paid each year. Thus, if
the Secretary is right, when the law was on
acted 80 per centum of the entire debt
subject to such increase. II this be the correct
construction of tho law. then 30 per cant OF
the debt is no longer fixed and certain, as ex-
pressed on the government books, but 1t il the
face value of such 80 per centum IN coin, plus
the amount to be added thereto by agreement be-
tween the Secretary and the bondholders each
year. The law which sets aside coin to pay the
principal and interest of the bonds. If this theory
be true also ought to have provided that suf-
fcient coin should be set aside to pay the amount
added to the face OF the bonds by agreement ss
'.There is no express authority in the law to
pay premiums or bonds. nor is there any pro-
vision IN the law to provide coin for the pay
ment or purchase of more than the face value
of the bonds. The assumption that authority
exists to pay more is built upon construction
alone. A law whose controlling and avowed
object is to extinguish a debt can not rightfully
be construed as authority to increase the debt
'sWhen the bon ds were below par, as they at
one time were, and were expected to remain for
long time, it would have worked injustice to the
great bulk Of the bondhoders to pay the face
value of l per ceutum OF the entire debt with
the privilege of the Secretary to select the
holders of that percentum. For this reason
the law gave power to purchase or pay, assrm-
ing that the Secretary would 90 what was the
most advan tageous to the government and most
just to the holders of the whole debt 1t would
work like njustice now to pay tho present hold
ers of / per centum OF the entire debt
hundred and twenty, thirty or fifty cents on the
dollar each year for their bonds. while the hold
of the other bonds can get only par when the
whole issue falls due years hence.
That the Secretary IL iu error in his con-
structon of the law is manifest from his declara-
tio1 that he cannot execute the law unless the
holders of the bonds cooperate with him. A
construction of the law which makes its execu- I
tion impossible by the officer charged with its
execution is necessarily wrong. Where did the
bondholders get the power to decide whether q
law should be executed or mott Where is tho
authority under our government to confide eay
influence or part in the execution OF law to
those so be affected by its executiona
This position absurd. The President un-
der the Constitution, must soc that the laws are
executed. His jurisdiction does not extent to
commanding or forbidding the b0ndholders to
assent dissent from the execution OF q given
law. He has power to command the Secretary
to execute statute whose provisions make him
the instrument of its execution, and II be does
not execute it to dismiss him. II law can
not be executed without the cooperation OF q
class of citizens over whom tho President has
no Jurisdiction, then the law 10 q dead letter and
and practically no law. II the sinking fund law
has any efficiency to accomplish q reduction OK
the debt, 1t Is because the Secretary OF tho
Treasury has power under it TO enforce it
whether its operation pleases or displsases those
affected by it. The Secretary's course is to or
debt of the United States each year, and to stop
the payment OF interest on it.
.It is fearful responsibility for the Admins
tration to attempt to inaugurate the policy or
increasing the public debt by paying premium
on bonds" !